Why invest in East Africa

Posted in Investment Promotion & Private Sector Development

Fifteen good reasons why you should choose East Africa as your investment destination:

• Market access to more than 145.5 million people;
• Combined GDP size of about US$ 147.5 billion;
• The world’s fastest reforming region in terms of business regulation;
• Simplified investment procedures and one-stop centre facility provided by national investment promotion agencies;
• Generous incentives offered;
• Vibrant and upcoming capital and securities market;
• High level of intra-regional trade and cross-border investments;
• Numerous investment opportunities traversing all sectors;
• Abundant labour force - educated, trained, mobile, skilled and enterprising;
• English is widely spoken; it is one of or the only official language in at least four of the five Partner States;
• Insurance against non-commercial risk by Multilateral Investment Guarantee Agency and Africa Trade Insurance Agency;
• Sanctity of private property guaranteed by national constitutions;
• Stable political environment and high level of governance and democracy;
• Consumer loyalty; and
• A warm and hospitable people.

Trade and Investment Framework Agreements

The EAC in 2011 signed framework agreements with the USA and China with the aim of boosting / promoting commodity trade, exchange visits by business people and co-operation in investment among others.

Key Partnerships: Private Sector in the EAC

Posted in Investment Promotion & Private Sector Development

Each of Partner State has developed a Private Sector Development Strategy. At the regional level, there is a Consultative Dialogue Framework for engagement of the private sector in the integration process. Secretary-General’s CEOs Forum is a result of the dialogue framework. It is a platform that allows business people from the region to interact with the Secretary-General on issues hindering trade and business in the region. In addition, the EAC has allied itself with key private sector organisations that seek to address concerns of the business community. These include the following:

East African Business Council

At the Community level, the East African Business Council (EABC) is the formal apex business body. It was established in 1997 to represent the interests of the region’s private sector in the EAC Regional Integration process.

EABC’s more specific objectives include the promotion and maintenance of a single market and investment area in East Africa and the maintenance of an institutionalised interaction with the EAC and its Partner States. EABC has a large membership in the region in various sectors including manufacturing, ICT, tourism, banking and media among others. Currently, it has an observer status in the EAC. www.eabc.info

East African Chamber of Commerce, Industry and Agriculture

The East African Chamber of Commerce, Industry and Agriculture is an organisation formed and owned by the three national Chambers, namely: the Kenya National Chamber of Commerce and Industry, the Uganda National Chamber of Commerce and Industry and Tanzania Chamber of Commerce, Industry and Agriculture. Its main objective is to lobby for the creation of a conducive environment for cross-border trade and investment within the context of the East African Customs Union. www.eastafricanchamber.org

Eastern Africa Association

The Eastern Africa Association was established in 1964 to facilitate foreign investors’ participation in the economic development of Eastern Africa. It is headquartered in London and acts as a channel of communication between foreign investors and Eastern African Governments. It interprets the policies and objectives of Governments to its members and, in turn, explains the views and needs of investors, prospective investors and foreign businesses, generally to Governments. www.eaa-lon.co.uk

National Associations

At the national level, a number of private sector associations have been established. These include; Chambre de Commerce et D’Industrie du Burundi, the Kenya Private Sector Alliance, the Rwanda Private Sector Federation, the Tanzania Private Sector Foundation and the Private Sector Foundation of Uganda. These associations include addressing cross-cutting sectoral concerns and facilitating dialogue with their Governments.

A number of sector-specific associations have also been set up mainly to collect and disseminate information to members, provide training and marketing services, and lobby the Government on behalf of their members. Among the most influential of these associations are the Kenya Association of Manufacturers, the Confederation of Tanzania Industries and the Uganda Manufacturers Association.

Export Promotion Organisations

Posted in Investment Promotion & Private Sector Development

The trade promotion bodies from Kenya, Tanzania and Uganda maintain a web portal (www.eacexport.com) facilitated by the Centre for the Promotion of Imports from Developing Countries from The Netherlands.

Find below additional information on national export promotion bodies. Detailed information is available on the websites provided.

Export Promotion Council

The Export Promotion Council (EPC) is Kenya’s premier institution in the development and promotion of export trade. Established in 1992, EPC’s primary objective was to address bottlenecks that were facing exporters and producers of export goods and services, with a view to increasing the performance of the export sector. www.epckenya.org

Board of External Trade of Tanzania

The Board of External Trade (BET) of Tanzania is dedicated to establishing global business partnership through organising and managing international and specialised trade fairs, solo exhibitions, product and market research, prospect development, trade missions, buyer-seller meetings and contact marketing programmes. BET gives out regular trade information and offers consultancy services to producers, exporters and importers to enable them to effectively participate in the global market place. www.bet.co.tz

Uganda Exports Promotions Board

The Uganda Exports Promotions Board (UEPB) is a public trade promotion organisation which operates under the Ministry of Tourism, Trade and Industry. UEPB’s mission is to facilitate the development, diversification, promotion and co-ordination of all export related activities that lead to export growth on a sustainable basis. www.ugandaexportsonline.com

Policy Initiatives for National Development

Posted in Investment Promotion & Private Sector Development

To promote investment in the region, the Community has, through the EAC Development Strategy, set out the priority programmes for the region focusing on macroeconomic cooperation; trade liberalisation and development; cooperation in infrastructure; the development of human resources, sciences and technology; and cooperation in legal and judicial as well as political affairs.

Burundi

The Government of Burundi set up the Economic and Social Council, a consultative and advisory body with competence in all areas related to economic and social development. Burundi’s Poverty Reduction Strategy Paper launched in 2006 sets out bold poverty reduction objectives consistent with the government’s 2005-2010 priority program and the Millennium Development Goals (MDGs).

Kenya

In Kenya, the Government formed the National Economic and Social Council in 2004, as an advisory body mandated to provide timely, accurate and independent economic and social advice with a view to improving the management of the economy.

The Kenya Vision 2030 is anchored on three pillars:

• Economic - Sustained economic growth of 10% per annum
• Social - A just and cohesive society enjoying equitable social development in a clean and secure environment
• Political - Issue based, people centred, results oriented and accountable democratic political system.

Rwanda

The Republic of Rwanda development roadmap, Vision 2020, identifies six ‘pillars’ on growth expectations namely: the reconstruction of the nation; an efficient State that unites and mobilises the people; human resource development; the development of basic infrastructure; the development of entrepreneurship and the private sector; and, the modernisation of agriculture and animal husbandry.

United Republic of Tanzania

Tanzania, under its Development Vision 2025, has identified the key objectives as achieving macroeconomic stability, attaining high levels of domestic saving and investment, broad-based human-resource development, and sustainable economic growth. It is also implementing its Poverty Reduction Strategy, which is aligned with the MDGs of the United Nations.

Private sector concerns are also addressed through the Tanzania National Business Council.

Uganda

According to the Uganda Poverty Eradication Action Plan (PEAP) of 2000, the highest priorities for medium term expenditure are security, roads, agricultural research and extension, primary education, primary health, and water and sanitation. A Presidential Investor’s Roundtable chaired by the country’s president is in place to ensure that government policies keep the private sector at the centre.

Regional Outlook

The EAC developed Private Sector Development Strategy (PSDS) in 2006 which is still operational but is in the process of reviewing the PSDS. Avenues for increased private sector participation have been integrated in all sectors of the economy and private sector enterprises are investing in the communities through Corporate Social Responsibility. As a result, investments to the EAC region have improved significantly. EAC attracted Foreign Direct Investments inflow of US$ 7.09 billion in 2014, up from US$ 6.2 billion in 2013.